AECOM 4016 Salt Pointe Parkway Charleston, SC 29405 Phone ... · James H. Martin, MAI and Paul K. Moore, MAI inspected the subject property on December 11, 2018, which is the effective

Addendum No. 1 Page-1 60593903

AECOM4016 Salt Pointe Parkway

Charleston, SC 29405Phone: (843) 767-5260

Fax: (843) 767-4723

Email OnlyJuly 20, 2020

RE: Felix C. Davis Wastewater Treatment Plant Lab ExpansionNorth Charleston Sewer DistrictN. Charleston, SC

AECOM Project No.: 60593903

ADDENDUM NO. 1 – July 20, 2020

TO: ALL HOLDERS OF RECORD OF CONTRACT DOCUMENTS

Acknowledge receipt of this addendum by inserting its number and date in the Bid Form.Failure to do so may subject bidder to disqualification. This addendum forms a part of theContract Documents. It modifies them as follows:

GENERAL

1. See attached Pre-Bid Conference minutes and sign-in sheet.2. Existing Property Appraisal Report for the treatment facility is attached for bidders’ use

during permitting.

ATTACHMENTS

Pre-Bid Meeting MinutesPre-Bid Sign-in SheetProperty Appraisal Report

END OF ADDENDUM NO. 1

- 1 -

PREBID CONFERENCE MEETING MINUTES

Felix C. Davis Wastewater Treatment Plant Lab Expansion

Project No. 60593903July 7, 2020

OVERVIEW OF PROJECT

The work to be performed consists of expanding the existing laboratory which will include newlab workstations and cabinetry, new lab equipment, new plumbing fixtures, new HVAC systemand electrical modifications.

PLANS

- A-2: Plan shows existing, new and future lab equipment. Existing items will beremoved and reinstalled by NCSD. New items are shown and specified in the biddocuments. Future items are shown for reference. Electrical, HVAC and plumbingconnections to be provided for all including future items.

SPECIFICATIONS

- Bid Form: Please note the bid alternate for the stainless steel countertops and sinksversus the phenolic resin. Provide a cost difference and indicate whether it is anadder or deduct from the base proposal.

- Bid Form: Include the cash allowance listed in the total for the base proposal- Section 01021 – Cash Allowance: Provide in the bid amount a cash allowance equal

to $25,000.00 to be used at the discretion of the Owner for the purchase of furniture,appliances, and other additional material and labor not specifically identified in thebase proposal.

MISCELLANEOUS ITEMS

- Pre-bid minutes and any addendum items will be incorporated into Addendum 1.- Site visit: Existing facility was open for viewing.- This is currently an operational facility. Coordinate any and all power outages with

NCSD. All switchovers need to be planned and approved.- Plumbing and Electrical inspections need to be called in to the City of Charleston.- NCSD can accommodate parking and provided area for trailer/storage container.- WWTP is secured and manned 24/7.- Contract period is 180 consecutive calendar days.- Liquidated damages are $500 per day.- All questions, including those from pre-bid conference, must be submitted via email

to [email protected] Last day for all questions is July 24, 2020 by 10:00 AM.- Bid date is July 30, 2020 at 2:00 PM at 7225 Stall Road.- No permitting has been completed to date. All permitting required is responsibility of

awarded contractor.

mailto:[email protected]

- 2 -

- An appraisal has been completed on the existing building. Appraisal report will befurnished to contractor for submittal to the City of Charleston.

- An environmental report (asbestos and lead based paint) will need to be performed onthe existing lab and maintenance area. NCSD will complete the environmental reportand provide to the contractor for submittal to the City of Charleston.

- Anticipated Notice to Proceed date is September 30. Construction start date will bedependent on permitting schedule to avoid delays.

- NCSD will verify if there is an existing roof warranty. NCSD does not have apreferred roofer.

Attachment – Sign in Sheet

APPRAISAL OF

1000 HERBERT STREET

CHARLESTON, SOUTH CAROLINA 29405

AS OF DECEMBER 11, 2018

OUR FILE NO. 18-297C

PREPARED FOR

DESIGN BUILD CONSTRUCTION

C/O MR. STEPHEN MUELLER

9561 HAMBURG ROAD

LADSON, SC 29456

DATED

DECEMBER 18, 2018

PREPARED BY

PAUL K. MOORE, MAI, CG #155

JAMES H. MARTIN, MAI, CG #4580

Copyright (c) 2018

PAUL K. MOORE & ASSOCIATES, INC.

A South Carolina Corporation

528 JOHNNIE DODDS BLVD., SUITE 102

MT. PLEASANT, SOUTH CAROLINA 29464

All rights reserved. No part of this document may be reproduced in any form or by any means, electronic or mechanical, including

photocopying and recording, or by any information storage and retrieval system without permission in writing from Paul K. Moore &

Associates, Inc.

Paul K. Moore & Associates, Inc. Real Estate Appraisers and Consultants

Paul K. Moore, MAI, SRA James H. Martin, MAI

President, SCREAB CG 155 SCREAB CG 4580

December 18, 2018

Design Build Construction

9561 Hamburg Road

Ladson, SC 29456

Re: Appraisal of 1000 Herbert Street

Charleston, SC 29405

Dear Sir:

Pursuant to your request, we have prepared an appraisal on the above referenced property. This

appraisal has been prepared in conformance with the Uniform Standards of Professional Appraisal

Practice (2018-2019 Edition) as amended by the Appraisal Standards Board of the Appraisal

Foundation.

James H. Martin, MAI and Paul K. Moore, MAI inspected the subject property on December 11,

2018, which is the effective date of this appraisal. The appraiser has significant experience in

appraising similar properties within the subject market. Our experience and knowledge of current

market trends and lease rates supports our competence to appraise the subject. The subject

property is a 4.22-acre site which is improved with a 32,368 SF building at the physical address

of 1000 Herbert Street in Charleston, South Carolina 29405.

I believe that a marketing period of one year or less would be reasonable in order to sell the

property, and that an exposure period of one year would also be appropriate as of the effective

date of this appraisal.

Based on my investigation, analysis, and conclusions, an opinion has been formed that the Market

Value of the Fee Simple Estate of the subject property, as of the effective date of December 11,

2018, subject to the Certification, General Assumptions, and General Limiting Conditions, is:

TWO MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS

$2,750,000

528 JOHNNIE DODDS BLVD. SUITE 102 MT. PLEASANT, SC 29464

OFFICE (843) 881-0454 FAX (843) 881-0568 888-607-6834

Design Build Corporation

December 18, 2018

Page Two

We have also been asked to provide a value of the underlying land. Based on our analysis, it is our

opinion that the value of the underlying land, consisting of a 4.22 acre commercial site, as of the

effective date of July 20, 2016, was:

NINE HUNDRED THIRTY THOUSAND DOLLARS

$930,000

Finally, by subtracting the value of the land from the value of the entire property, this results in the

contributory value of the improvements. Therefore, based on our analysis, the contributing value of

the improvements, as of the effective date of December 11, 2018, was:

ONE MILLION EIGHT HUNDRED TWENTY THOUSAND DOLLARS

$1,820,000

Your attention is invited to the following report, which states the appraiser's conclusions. We

hereby certify that to the best of our knowledge and belief the statements and opinions contained in

this report are full, true, and correct and that no attempt has been made to overlook any pertinent or

important information.

We further certify that we have no interest in the subject property and that neither the employment

to make this appraisal, nor the compensation therefore, is contingent on the value of the property.

We certify that this appraisal was made in conformity with the Rules of Professional Ethics of the

Appraisal Institute.

Our analyses, opinions and conclusions were developed, and this report has been prepared, in

accordance with the final rule by Office of the Comptroller of the Currency (12 CFR Part 34) dated

June 7, 1994, as amended, the Uniform Standards of Professional Appraisal Practice and in

conformity with the requirements of the Code of Professional Ethics and the Standards of

Professional Practice of the Appraisal Institute.

The compensation for this appraisal is not contingent upon the reporting of a predetermined value

or direction in value that favors the cause of the client, the amount of the value estimate, the

attainment of a stipulated result or the occurrence of a subsequent event. The appraisal assignment

is not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

Design Build Corporation

December 18, 2018

Page Three

Paul K. Moore & Associates, Inc. has prepared this appraisal for the exclusive use of the stated

client. The information and opinions contained in this appraisal set forth the appraiser's best

judgement in light of the information available at the time of the preparation of this report. Any use

of this appraisal by any other person or entity, or any reliance or decisions based on this appraisal,

are the sole responsibility and at the sole risk of the third party.

Paul K. Moore & Associates, Inc. nor the appraiser(s) accept no responsibility for damages suffered

by any third party as a result of reliance on or decisions made or actions taken based on this report.

Respectfully submitted,

Paul K. Moore, MAI James H. Martin, MAI

South Carolina Certified General State of South Carolina Certified General

Real Estate Appraiser CG# 155 Real Estate Appraiser CG #4580

AERIAL VIEW OF SUBJECT PROPERTY

SITE PLAN

Exterior Views of Subject

Exterior Photographs

Exterior Photographs

Interior Photographs – Office/Lab Space

Interior Photographs – General Office Areas

General Office Areas

Interior Photographs – Warehouse/Industrial Areas

Industrial Areas

View of Concrete Slab Thickness / Industrial Areas

TABLE OF CONTENTS

Cover Page .............................................................................................................................................. i

Letter of Transmittal .............................................................................................................................. ii

Subject Photographs ............................................................................................................................. iii

Table of Contents ................................................................................................................................. iv

Certification of the Appraiser ................................................................................................................ 1

Summary of Important Conclusions ..................................................................................................... 4

Identification of the Subject Property ................................................................................................... 5

Client / Intended User ............................................................................................................................ 5

Effective Date ........................................................................................................................................ 5

Property Rights Appraised .................................................................................................................... 6

Statement of Ownership ........................................................................................................................ 6

Zoning .................................................................................................................................................... 6

Extraordinary Assumptions ................................................................................................................... 7

Hypothetical Conditions ........................................................................................................................ 7

Tax and Assessment Analysis ............................................................................................................... 8

Environmental Conditions/Americans with Disability Act .................................................................. 8

Purpose of the Appraisal/Definition of Market Value .......................................................................... 9

Market Area Analysis .......................................................................................................................... 10

Site Description .................................................................................................................................. 30

Improvement Summary ....................................................................................................................... 35

Scope of Work ..................................................................................................................................... 37

Highest and Best Use Definition ......................................................................................................... 40

Highest and Best Use .......................................................................................................................... 41

Exposure / Marketing Period .............................................................................................................. 43

Valuation Methodology ....................................................................................................................... 44

Land Value........................................................................................................................................... 46

Market Approach ................................................................................................................................. 54

Final Reconciliation ............................................................................................................................ 67

General Limiting Conditions ............................................................................................................... 68

General and Underlying Assumptions ................................................................................................ 69

Qualifications of the Appraisers .......................................................................................................... 71

Addendum ........................................................................................................................................... 74

1

CERTIFICATION OF THE APPRAISER

The appraiser(s) hereby certifies that Paul K. Moore & Associates, Inc. was engaged to appraise the

Market Value of the Fee Simple Estate of the following real property, as of the effective date of

December 11, 2018.

1000 Herbert Street

Charleston, SC 29405


2018. The statements and facts contained in this report are true and correct.

Neither Paul K. Moore & Associates, Inc. nor the signatories of this Certificate have any present or

contemplated future interest in the real estate that is the subject of this report. The appraiser(s) have

no present or prospective interest in the property that is the subject of this report and no personal

interest or bias with respect to the parties involved; any specified interest or bias has not affected

the impartiality of the opinions and conclusions. The appraiser(s) have no bias with respect to the

parties involved with this agreement. Our engagement in this assignment was not contingent upon

developing or reporting predetermined results.

It is further certified that no one provided significant professional assistance to the person signing

this report unless otherwise stated.

To the best of the appraiser's knowledge and belief, the reported analyses, opinions and conclusions

were developed, and this report has been prepared, in conformity with and is subject to the Uniform

Standards of Professional Appraisal Practice of The Appraisal Foundation and to the Code of

Professional Ethics and Supplemental Standards of Professional Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by

its duly authorized representatives.

2

As of the date of this report, Paul K. Moore, MAI, and James H. Martin, MAI, have completed the

requirements of the continuing education program of the Appraisal Institute and the South Carolina

Real Estate Appraisers Board. The appraisers have not performed any services related to the

subject property, including appraisal, within the past three-year period from the date of acceptance

of this assignment.

The compensation for completing this assignment is not contingent upon the development or

reporting of a predetermined value opinion or direction in value that favors the cause of the client,

the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a

subsequent event directly related to the intended use of this appraisal. The assignment was not

based on a requested minimum valuation, a specific valuation or the approval of a loan.

Based on my investigation, analysis, and conclusions, an opinion has been formed that the Market

Value of the Fee Simple Estate of the subject property, as of the effective date of December 11,

2018, subject to the Certification, General Assumptions, and General Limiting Conditions, is:

TWO MILLION SEVEN HUNDRED FIFTY FIVE THOUSAND DOLLARS

$2,750,000



effective date of December 11, 2018, was:


$930,000

3





$1,820,000

Paul K. Moore, MAI James H. Martin, MAI

South Carolina Certified General State of South Carolina Certified General

Real Estate Appraiser CG# 155 Real Estate Appraiser CG #4580

4

SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS

Location: 1000 Herbert Street, Charleston, SC 29405

Tax Map #: 466-00-00-007 (Portion), Charleston County

Owner of Record: North Charleston Sewer District

Land Area: 4.22 Acres

Zoning: HI, Heavy Industrial District

Improvements: 32,368 SF Office/Industrial Building

Highest and Best Use: Industrial Use

Estimate of Land Value: N/A

Estimate of Value

Cost Approach: Not Applicable

Estimate of Value

Income Approach : Not Applicable

Estimate of Value of Building by

Sales Comparison Approach: $2,750,000

Final Estimate of Value: $2,750,000

Estimate of Land Value: $930,000

Contributory Value of the Improvements: $1,820,000

Effective Date: December 11, 2018

Appraisers: Paul K. Moore, MAI

James H. Martin, MAI

Flood Zone: “X” and "AE", FEMA panel 45019C 0504 K

5

IDENTIFICATION OF THE SUBJECT PROPERTY

The subject property consists of the 32,368 SF industrial building which is located on a 4.22 acre

site at the physical address of 1000 Herbert Street in Charleston, South Carolina 29405.

The purpose of this appraisal is to estimate the value of the Improvements Only at the subject

property. The value will be divided between the value of the underlying land and the value of the

entire property. The difference in value is the contributing value of the improvements. The

effective date of this appraisal is December 11, 2018.

Please refer to the numerous exhibits including tax maps, plats, aerial photographs, flood maps,

building sketches and subject photographs for a more complete description of the subject

property.

CLIENT OF THE APPRAISAL/INTENDED USER

This appraisal is for the exclusive use of the intended client, Design Build Corporation. It is

understood that the intended use of this appraisal is to estimate the market value of the subject

property. We have been asked to provide a value of the underlying land and the value of the

entire property as of the effective date of this report.

DATE OF THE APPRAISAL


2018, which is the effective date of this appraisal. The date of the report is December 18, 2018.

6

PROPERTY RIGHTS APPRAISED

The property rights appraised are those of full, complete, and unencumbered ownership, subject

only to the governmental rights of taxation, police power, eminent domain, and escheat. This is the

greatest right and title that an individual can hold in real property. It is known as “Fee Simple

Interest”.

STATEMENT OF OWNERSHIP

The subject property is currently owned by North Charleston Sewer District, having been

transferred to the current ownership on April 22, 1996, as recorded in Deed Book E268 at Page

383. This was a transfer of several properties of which the subject property is a portion. The

appraisers are unaware of any additional contracts, listings, or sales of the subject property during

the past three-year period.

ZONING

The subject property is zoned HI, Heavy Industrial District by the City of Charleston Zoning

Department. The current use is a legal and conforming use.

7

PROPERTY SPECIFIC ASSUMPTIONS / LIMITING CONDITIONS

There are no specific assumptions and/or limiting conditions which are unique to the subject

property which are not covered in the General Limiting Conditions and Underlying Assumptions

section of this report.

EXTRAORDINARY ASSUMPTIONS

Extraordinary assumptions presume uncertain information to be factual. If found to be false

these assumptions could alter the appraiser’s opinions or conclusions. (The Appraisal of Real

Estate, Appraisal Institute) There are no Extraordinary Assumptions for this appraisal.

8

HYPOTHETICAL CONDITIONS

That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical

conditions assume conditions contrary to known facts about physical, legal, or economic

characteristics of the subject property; or about conditions external to the property, such as

market conditions or trends; or about the integrity of data used in an analysis. (The Dictionary of

Real Estate Appraisal, Appraisal Institute)

The subject property is a portion of a larger tract of land which contains a total of 19.35 acres of

land. The specific subject property is a part of a larger tract of land which is utilized by the North

Charleston Sewer District for their operations center. There are many additional buildings, large

tanks and ancillary improvements on the subject site.

The subject property has been appraised as if a typical industrial building in the subject market.

We have utilized a reasonable Land to Building ratio, as well as GIS technology to provide a

reasonable estimate of the appropriate site for the subject building.

Based on a typical Land to Building Ratio, Parking Areas and typical access, we have estimated

the appropriate site for the subject property to have a total of 4.22 acres of land. Therefore, this

appraisal is based on the Hypothetical Condition that the appropriate site for the subject building

would be 4.22 acres of land. This site would include appropriate driveways, access and turn

around areas for large trucks, and would provide excellent utility for the current use.

Please review the Site Analysis section of this report for an aerial view of the appropriate site and

improvements.

9

TAX AND ASSESSMENT ANALYSIS

The subject property is identified by the Charleston County Assessor’s Office as a portion of 466-

00-00-007. The subject property is owned by a government entity and is not subject to property

taxes.

ENVIRONMENTAL CONDITIONS

In this appraisal assignment, the existence of potentially hazardous material present at the site or

at adjoining or immediate properties, which may or may not have been present, was not observed

by us, nor do we have knowledge of the existence of such materials on or near the property being

appraised. The appraisers are not professionally qualified to detect such substances. We suggest

that, as determined by the client's environmental policy, an expert in this field be retained.

AMERICANS WITH DISABILITIES ACT

The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not

made a specific compliance survey and analysis of this property to determine whether or not it will

be in conformity with the various detailed requirements of the ADA. It is possible that a

compliance survey of the property, together with a detailed analysis of the ADA, could reveal that

the property will not be in compliance with one or more of the requirements of the act. If so, this

fact could have a negative effect on the value of the property. Since we have no direct evidence

relating to this issue, we did not consider possible non-compliance with the requirements of the

ADA in estimating the value of the property. The extent of investigation and methodology

conforms to our interpretation of USPAP requirements.

10

PURPOSE OF THE APPRAISAL / DEFINITION OF MARKET VALUE

The purpose of the appraisal is to estimate the market value of the subject property.

Market value is defined as:

The most probable price which a property should bring in a competitive and open market

under all conditions requisite to a fair sale, the buyer and seller each acting prudently and

knowledgeably, and assuming the price is not affected by undue stimulus.

Implicit in its definition is the consummation of a sale as a specified date and the passing of

title from seller to buyer under conditions whereby:

1. Buyer and Seller are typically motivated.

2. Both parties are well informed or sell advised, and acting in what they consider their

own best interests.

3. A reasonable time is allowed for exposure in the open market.

4. Payment is made in terms of cash in U.S. dollars or in terms of financial

arrangements comparable thereto.

5. The price represents the normal consideration for the property sold unaffected by

special or creative financing or sales concessions granted by anyone associated with

the sale.

Sources: A. Department of the Treasury, Office of Thrift

Supervision 12 CFR Part 564.2, dated Thursday,

August 23, 1990.

B. Department of the Treasury, Office of the

Comptroller of the Currency, 12 CFR Part 34.42

dated Friday, August 24, 1990.

C. Federal Deposit Insurance Corporation, 12 CFR

Part 323.2, dated Monday, August 20, 1990.

11

CHARLESTON MSA REGIONAL ANALYSIS

The Charleston Metropolitan Statistical Area (Charleston MSA) is a three-county entity consisting

of Berkeley, Dorchester and Charleston County. Berkeley County is bordered on the south by

Charleston County and to the West by Dorchester County. These three counties make up what is

known as the Trident Area or Tri-County Area. The Charleston Metropolitan Statistical Area

(MSA) includes these three counties due to their close physical and economic relationships.

The Cities of Charleston, North Charleston and Goose Creek and the Towns of Summerville and

Mount Pleasant are the five major urban areas in this region. These five areas comprise the

majority of the residential base, economic growth and major centers of employment for the

Charleston MSA. These areas have all experienced explosive growth in residential and commercial

development over the past several years.

It is important to note that the combination of a broad economic base, an able workforce and the

many recent positive occurrences has continued to strengthen the Charleston MSA’s position as

an established leader in many sectors on a state, regional and national level.

To follow is a brief summary of these five areas which together make up the Charleston MSA.

12

The City of Charleston

The City of Charleston is the county seat for Charleston County. Charleston was founded in 1663

under a land grant from Charles II and named "Albemarle". The name was changed to "Charles

Town" within a few years and the city was incorporated in 1783. The city of Charleston is located

around Charleston Harbor, which is formed by the Ashley, Cooper, and Wando Rivers.

The historic City of Charleston is located on the peninsula of land between the Ashley and Cooper

Rivers and is a relatively small geographic area. Charleston has traditionally been known as a

seaport and agricultural center and has more recently become an internationally known resort and

convention destination.

Charleston has a diverse economy incorporating the port-related industries, travel and

leisure/hospitality, industrial development and a significant amount of retail, office and residential

development. The City of Charleston has two cruise lines that call on the city including Carnival

Cruises and Norwegian Cruise Lines. The City of Charleston is consistently ranked highly in

annual surveys of best places to live and visit by countless travel and leisure publications.

The City of Charleston encompasses many diverse districts including the West Ashley area, Johns

Island, James Island, the Downtown Historic District, the Downtown Business District, the

“Charleston Neck” industrial area and through annexation has recently grown to include the areas

of Daniel Island and several residential areas across the waterways of both the Ashley and Wando

River in both Charleston and Berkeley County.

The Downtown Business District enjoys the stability of a relatively low amount of developable land

with very little new product and a tenant mix that is stable and consists of many major, long-term

tenants that have been occupying the same areas for several decades.

13

Tourism/Hospitality is also a significant contributor to the overall economy of the City of

Charleston and this has also fared very well over the past several years. The City of Charleston is

regularly recognized as a Top 10 Travel Destination Worldwide. Hotel occupancies have been

reported to be extremely strong in the Downtown Areas. The demand to visit the Charleston Area

is considered to a major driving force in the local economy. There are several new hotels,

restaurants, offices and mixed use developments either under construction or in the planning stages

throughout the City of Charleston areas.

New developments in the Downtown Charleston area are closely regulated by several

historic/preservation societies as well as strict zoning regulations. There are several proposed

mixed-use developments in the Downtown Charleston area which are located just north of Calhoun

Street, which is the historical dividing line between downtown and midtown Charleston.

These developments include “Midtown”, which is an major mixed-use retail and residential

development located along King Street just north of Calhoun Street. The potential economic

impact of this development has been compared to the Charleston Place Hotel which was developed

adjacent to Market Street in the 1990’s. After several years of dormancy, this project has been

reinvigorated with Class “A” apartments which were developed by Greystar, as well as

complementary retail developments. There are several new and proposed hotels in the immediate

area of Midtown, including a new Holiday Inn, Hyatt and Hyatt Place.

Other developments include the proposed Concord Street waterfront park as well as the Marriott-

anchored mixed-use development located on Calhoun Square at Calhoun Street and King Street.

The opposite corner of Calhoun and King Street is the location of the former Millennium Music

retail facility which is being redeveloped as a Walgreen’s anchored mixed use property. The

former library has been demolished and construction of the new hotel facility is occurring at this

property.

Finally, there has been some new office development in the Downtown area. Holder Properties has

developed a 60,000 SF office building known as 25 Calhoun near waterfront park, and leased that

property up to stabilization in less than an 18-month period.

14

Other major developments in the Downtown Charleston area include the renovation of the Kress

Building to accommodate a large attorney’s office, the development of Elan Midtown, which is a

luxury apartment development on Upper King Street by Greystar Developments, and a new Holiday

Inn Hotel Facility along Upper Meeting Street at the intersection with Reid Street. There are

several new sales and lease transactions which have occurred along Upper King Street in the past

one-year period. There are several major multifamily and lodging developments located throughout

the Peninsular Charleston area.

This area, which is located in close proximity to both the Upper King Street area and the College of

Charleston, has experienced a great deal of revitalization over the past three-year period. Many

locally and nationally renowned restaurants, such as Hall’s Chophouse, The Ordinary, Oku, Closed

for Business, Indaco Charleston, Stars Bar and Grill, La Fourchette and The Macintosh have

located within this general area over the past several years. New and expanding businesses in the

area include PeopleMatter, which is a technology company which has its offices along King Street.

These new developments have reinvigorated the Upper King Street area.

Other new developments include the beginning of the redevelopment of the former Charleston Post

and Courier site, which is located in close proximity to the intersection of Spring Street and King

Street. This is an approximately 10 acre site which is planned for multifamily, office, retail and

mixed uses.

The overall appeal of the City of Charleston has provided the area for a positive economic outlook

for both the short and long term. This is due to the relatively low supply of developable land, the

stability of the current economic base and the historically high demand to work and live in the City

of Charleston, South Carolina.

15

City of North Charleston

The City of North Charleston was incorporated in 1972. North Charleston has become one of the

largest cities in the State of South Carolina and has become a major player in both retail and

industrial development in the area. The City of North Charleston is known as being one of the

major employment centers for the Charleston MSA and is conveniently accessed via several major

roadways including Interstates 26 and 526.

North Charleston was negatively affected by the closing of the Navy base in the early 1990’s. For

the past several decades, there has been relatively higher unemployment and slower economic

growth in the North Charleston area when compared to the rest of the Charleston MSA. However,

the past decade has brought significant change in the outlook for this area.

Major recent developments in the North Charleston area include Centre Pointe, which is a master

planned, 300+ acre commercial development located along International Boulevard, just across

from the North Charleston Coliseum. This is a regional shopping destination consisting of a Tanger

Outlet Center, a Super Wal-Mart, a Sam’s Club Discount store, several new hotel facilities and

restaurants, approximately 250,000 SF of new office space and over 1,000,000 SF of retail space.

Other major developments in North Charleston had included the Noisette Project, which is a

master-planned redevelopment of the former Navy Base. This is a massive, mixed-use

development which had been projected to revitalize the entire Park Circle/Old North Charleston

area. However, this development failed and the balance of the land has been sold. There have

been several new developments at that property, including a distribution center for Continental

Tire, the Clemson Wind Turbine facility and several multifamily developments are planned

within the immediate area. There is a new port terminal which will be located in this area as well

as many new rail related developments such as a proposed interchange at Cosgrove Avenue and

related improvements.

16

Another major occurrence in the North Charleston Market has been the emergence of the

Palmetto Commerce Park, a Class “A” 1,000 acre, industrial development located along Palmetto

Parkway, between Ashley Phosphate Road and Ladson Road. Over the past five years, there

have been several major transactions within this development, as tenants include Daimler

Chrysler, Shimano, TagHitco, the Charleston County 911 Service and several municipal and

healthcare providers have opened data centers in this area. Land values have risen dramatically

within this development, with relatively large industrial tracts being priced at upwards of

$175,000 per acre.

Finally, the City of North Charleston and the Charleston Development Alliance previously

announced the decision of Boeing to place their 787 Dreamliner Assembly Line within the

Charleston International Airport Industrial Park located in the City of North Charleston. This has

been described as an “economic coup” for the region, as the economic impact include an

investment in excess of $750 million dollars in the area over the next five-year period. This has

provided a major economic impact to the entire Charleston MSA.

Statehouse speaker Bobby Harrell called the announcement a declaration "to the global business

community that SC is back in the game and open for business." He called the decision the biggest

economic development in the state in over a decade. Former Governor Mark Sanford said he

thought the decision by Boeing would spur on the aerospace industry much in the same way BMW

did with an upstate factory 15 years ago, calling the deal the "largest announcement in South

Carolina history."

This development, coupled with the large amounts of developable land within the North Charleston

area, provides the potential for significant growth in all sectors. The City of North Charleston has

made significant progress over the past decade to provide both commercial and residential growth.

17

Town of Summerville

The Town of Summerville has long been known as a “Bedroom Community” for the Charleston

Area, as many downtown residents historically moved inland during the summertime to the

Summerville area, retreating from the relatively hot weather and high humidity which were

characteristic of the City of Charleston. In the past, Summerville was a small, relatively rural area

which was characterized as being the location for 2nd

homes of many residents.

Today, Summerville enjoys a well-balanced economy and is characterized as having exceptional

schools, affordable cost of living, a small-town atmosphere and an overall high quality of life.

The majority of the new development in the Summerville area has consisted of relatively

affordable single-family residences ranging in price from the low to mid $100,000 range to

upwards of $450,000. As displayed above, the Summerville area has experienced explosive

levels of population growth over the past decade. This can be mainly attributable to the

availability of the combination of relatively affordable housing and the high quality of life which

has traditionally been associated with living within the Town of Summerville.

The growth of the subject area is also a result of the decreasing supply of developable land

proximate to the suburban areas of the City of Charleston as well as the relatively high prices of

developable land in close proximity to the more affluent areas of the Town of Mount Pleasant,

the City of Charleston, Daniel Island and the beach/island areas of Kiawah Island, the Isle of

Palms, Folly Beach and Sullivan’s Island.

As the population of Summerville increased over the past decade, demand for housing increased

as well. Many new residential developments were met with incredible success and the Raw

acreage had risen in price dramatically in the Summerville area over the past decade as well, with

developable land being priced in the $10,000 per acre range at the beginning of the decade to

upwards of $70,000 per acre during the height of the real estate market in 2006 and 2007.

Commercial development following these trends over the past decade as well. The major

commercial development in the Summerville area over the past ten years was the Azalea Square

18

Mall, a regional retail development located along Highway 17-A in close proximity to Interstate

26 within the Town of Summerville. This is a major retail destination which is anchored by

Kohl’s, Ross Dress for Less, Dick’s Sporting Goods and Target. There are several local and

national tenants located within this development and vacancies are low.

Other major retail and commercial developments have included several Publix-anchored retail

centers which serve the new population centers in the Summerville area. The downtown

Summerville area has been revitalized as an active area for local retailers, businesses and

restaurants. Many banks have purchased sites and developed branches over the past several years

in the Summerville area which resulted in a boom for commercial sites within the Downtown

area.

The demand for large, industrial sites in this area is due to the scarcity of comparable, large size

tracts in the subject market area. This, coupled with the relative convenience of the Summerville

area to both Interstate 26, Interstate 95 and the Port of Charleston has provided ample

opportunities for industrial development in this area. There are few opportunities in the

Charleston MSA for large-scale industrial development in such a convenient location proximate

to these major linkages.

There are several large-scale industrial and distribution projects planned for this area. These

include the joint development of the Rockefeller Group/Foreign Trade Zone Charleston. This is

a massive distribution and industrial development which is planned for 2.7 million square feet of

industrial space on approximately 400 acres of land.

In summary, the Town of Summerville has experience unprecedented growth over the past ten-

year period. All sectors of the economy, including office, retail, industrial and residential

developments are at or near historically high levels.

19

Town of Mount Pleasant

The Town of Mount Pleasant is located just across the new Arthur Ravenel Jr. Bridge from the

Downtown area of the City of Charleston, South Carolina. The Town of Mount Pleasant is

considered to be a bedroom community of the Charleston MSA and is considered to be an excellent

location to live and work. The Town of Mount Pleasant has been consistently ranked in the Top

100 Cities to Live by Money Magazine over the past decade.

Mt. Pleasant has traditionally been known for its historical architecture, recreational amenities,

residential communities and temperate climate. The traditional water-oriented focus of the town

is evidenced by the location of the Old Village district along the Harbor and the long presence of

the shrimping and fishing industries in Shem Creek. In more recent years, the location of

Patriot's Point Maritime Museum and the Wando Terminal of the State Ports Authority in the Mt.

Pleasant area have broadened the local interest in Mt. Pleasant's unique waterfront setting.

To local residents and business owners, Mt. Pleasant represents quality of life factors that include

an outstanding public school system, one of the highest per capita incomes in the Southeast, a

broad range of excellent housing, availability of water and sewer, and the second lowest property

tax rate of any of the ten largest cities of the state. In addition, Mt. Pleasant offers a healthy local

economy, superb public and private recreational facilities, a beautiful natural environment, and

the lowest crime rate of any of the ten biggest cities in South Carolina.

Growth in recent years has been guided by a comprehensive land use-planning program, which

also encompasses recreational facilities, revitalization of the older business district and

diversification of future economic development and annexation philosophies. These planning

tools have proven effective in maintaining those attributes most cherished by the citizens of this

affluent, but quaint, "bedroom community", as well as providing for manufacturing, and

corporate property and the nearby East Cooper Corporate Airport.

Current population estimates for the Town of Mount Pleasant are approximately 80,000 which

represents one of the fastest growing areas in the Southeastern United States. This represents an

20

extremely high level of population growth for this area, especially considering the Town of

Mount Pleasant enacted a building permit allocation program early in the past decade which

limited population growth to a maximum of 4% per year.

Demand for single-family housing has skyrocketed during the what is now known as the post-

recession period, with home values increasing at a rate of up to 10% per year in some areas.

Prices have returned to the prior peak levels of 2006-2007, and have risen steadily over the past

one to two-year period, with pent up demand and lower interest rates continuing to fuel the

housing market. This is considered to be a major positive indication for the overall health of the

local economy.

Commercial development in the Mount Pleasant area has rebounded over the past several years.

Many small businesses are located in the Mount Pleasant area and these businesses typically

consist of financial firms such in fields such as real estate sales, engineering/surveying, attorney’s

offices, accounting and financial firms. These businesses had contracted significantly in the last

2000’s, with office vacancy rates increasing at one point to excess of 20% in the Mount Pleasant

area. However, as market conditions continue to improve, office vacancies have declined to a

historically stable 5% to 10% level.

Recent retail developments include Oakland Plantation, which is a Wal-Mart and Kohl’s

anchored retail center located along Highway 17 North. This retail development consists of

upwards of 750,000 SF of space. There are several successful restaurants and local retailers

located within this development. Other retail developments include two Harris Teeter-anchored

shopping centers located along Highways 17 and Highway 41 in growing areas of the town.

21

There are two new hospitals which are located in the Mount Pleasant area. These two hospitals

include the new East Cooper Hospital, which is a 250,000 Square Feet, regional medical center

with 130 acute-care beds and significant surgical and technological capabilities. This facility is

located along Bowman Road in close proximity to Johnnie Dodds Boulevard.

The new Roper St. Francis Hospital Mount Pleasant is located in close proximity to the majority

of new residential growth and development in the Town along Highway 17 proximate to

Highway 41. This is an 85-bed facility and is located adjacent to a new medical office park

which will include offices for up to 45 doctors.

Each of these new facilities is expected to contribute significantly to the local economy with

regard to new jobs as well as providing new opportunities for commercial and retail

developments in the immediate areas serving these facilities.

Finally, the largest development in the Town of Mount Pleasant is located along Highway 17

North, approximately five miles north of Highway 41 and is known as Carolina Park. This is a

master-planned, mixed-use development comprised of over 1,700 acres of land. This property is

located adjacent to the new Wando High School and is planned for several thousands of

residents.

The infrastructure has been completed and significant development has begun. After several

years of legal issues and with minimal development complete, several national builders are

constructing single family homes in this development. Carolina Park has been a major success

over the past three-year period.

In summary, the Town of Mount Pleasant experienced explosive growth in both property values

and population over the past ten-year period. Mount Pleasant is generally characterized as being

an exceptional location due to the high quality of life, excellent school system and the numerous

recreational opportunities in the area.

22

City of Goose Creek

Goose Creek is located in the southernmost portion of Berkeley County adjacent to the City of

Hanahan and the City of North Charleston. Goose Creek is a bedroom community for the City of

Charleston and is part of the Charleston Metropolitan area. The city encompasses an area of

approximately 31 square miles and was incorporated on March 22, 1961.

The lower Berkeley County and Goose Creek area has been one of the fastest growing areas in

the Tri-County Region. Berkeley County is currently the fastest growing county in South

Carolina, and two-thirds of the county populations live in this area. The city has experienced

significant growth in the past 10 years, becoming the state's 12th

largest municipality and a major

residential community for the Charleston area. This is one of the fastest growing areas of the

Charleston MSA.

Up until approximately ten years ago, the City of Goose Creek’s growth over the past two

decades was primarily a result of a large residential development project that was undertaken by

Westvaco Development Corporation known as Crowfield Plantation. Crowfield Plantation was

one of the original master-planned developments in the Charleston Metropolitan Area.

Crowfield Plantation features a golf course, an Olympic-size swimming pool, club house, lake,

hiker-biker trail, churches, several public schools, recreational area, and commercial areas which

are either completed or under construction. There are several residential developments located

within Crowfield Plantation with homes ranging in price from the lower $100,000’s to upwards

of $750,000 for large, custom homes located on the golf course.

The most recent five-year period has provided for explosive growth for the Goose Creek Area.

Major residential and commercial development have included Liberty Hall Plantation, Foxbank

Plantation, Spring Grove Plantation, Cobblestone Village and the master planned Cane Bay

development by Del Webb located near the intersection of Highway 17A and Highway 176.

23

Many of these developments are master-planned developments which are planned for various

single-family residential subdivisions, multi-family projects, schools, commercial uses and the

like.

These are several master-planned, mixed-use developments which are all located within the City

of Goose Creek. Demand for single-family homes in the subject market is considered to be

average to good, with the majority of the new residences being constructed typically being

purchased by a first-time homebuyer.

Most of the new commercial development over the last ten years has taken place on US Highway

176. This development includes several neighborhood shopping centers and a new Wal-Mart

and Lowe’s Home Improvement store located at the intersection of Highway 17A and 176.

Other development on US Highways 52 and 176 include a variety of commercial utilizations

such as offices, new retail development, branch bank offices, and restaurants.

Recent development on Highway 176 include a new Piggly Wiggly anchored retail center, a

proposed Harris Teeter at the intersection of Highway 176 and Highway 17-A, a proposed Publix

anchored shopping center at the entrance to Cane Bay, a Zaxby’s, an Auto Zone, a Pit Stop Gas

Station, a Sonic fast food restaurant, and a medical center. There has been a significant amount

of new commercial and retail development at this intersection.

Industrial development in the City of Goose Creek is located in both Crowfield Village and in the

Mount Holly Commerce Park. The Mt. Holly Commerce Park is located along U.S. Highway 52

on the south side of Cypress Gardens Road. This is a 1,044-acre, Class A industrial park that

was developed by Berkeley County to attract industry to the area.

The largest development within this area has been the new $600 million data center for Google,

Inc. which was constructed on a 520-acre site in the within the park. The new Google data center

has been providing a significant boost to the local economy. At full employment, the new data

center is projected to employ upwards of 200 persons with an average annual salary of $48,000.

The central business district and primary commercial area in the City of Goose Creek is located

24

on and between US Highways 52 and 176. There are three streets connecting the highways,

Brandywine Road, Central Avenue, and Thomason Boulevard.

The intersection of US Highways 52 and 176 is the focal point of development in the area. About

50% of the traffic continues on US Highway 52 and the other 50% travels on US Highway 176

toward Crowfield Plantation and the residential development located proximate to Carnes

Crossroads. The traffic continuing on US Highway 52 is largely traffic to Moncks Corner.

In summary, the City of Goose Creek has experience unprecedented growth over the past ten-

year period. While residential development had stalled slightly during past recessionary

environment, it is important to note that there are several positive factors in play in the current

environment.

The relative convenience to the entire Charleston MSA as well as the affordability and quality of

housing in the subject market provides incentive for further growth within the Goose Creek area.

The continued occupancy of Google within the Mount Holly Industrial Park and the development

of several master-planned developments incorporating all levels of residential development,

schools, churches, parks and other amenities is considered to be a significant asset to the subject

area. In summary, the outlook for the City of Goose Creek is considered to be good.

25

Charleston MSA Summary

In summary, the Charleston MSA has experienced explosive levels of growth over the past ten-

year period. Population has risen significantly in all submarkets of the Charleston MSA, which

is generally characterized as being a thriving area, with relatively low unemployment and high

income levels when compared to the State of South Carolina as well as the Southeastern United

States.

Unemployment figures have traditionally averages approximately 3% to 7% annually for the

Charleston MSA over the past ten-year period. The current unemployment rate is estimated to be

just under 4%. This has stabilized over the past one and two-year periods. This is the lowest

unemployment rate in the State of South Carolina.

The Charleston MSA has historically been an attractive location for businesses and individuals

alike, and the economic climate is considered to be relatively good as new businesses continue to

expand and invest in the market area.

There have been several positive occurrences over the past several years which provide for

continued optimism for the market area. Boeing’s initial $750 million investment in the area and

resulting 8,000 jobs is perhaps the best economic news this area has heard in several decades.

Projections have indicated an additional 12,000 jobs may also be provided in direct support of

this project. Boeing has continued to expand their operations throughout the Charleston MSA.

This is a major positive impact for the subject economy.

There have been several new large construction projects in the medical field in the Charleston

MSA. Two hospitals have recently been completed in the Town of Mount Pleasant and a large,

150,000 SF+ cancer center in the West Ashley section of the City of Charleston. There is a new

70,000 SF+ medical office facility which has been completed along Hungry Neck Boulevard in

Mount Pleasant. These are all major positive indicators for the medical office sector of the

economy.

26

The downtown Charleston area has been reinvigorated once again with recent high-profile office,

multifamily, lodging and retail developers once again returning to the market. New projects of

note include the two new, 60,000 SF+, Class “A” office facilities in the Downtown Charleston

area, a new mixed-use development known as Midtown, a new Holiday Inn and several large

scale retail and office developments are proposed or under construction along the Upper Meeting

and King Street corridors. There are upwards of six luxury hotels planned for the Downtown

Charleston area, which is unprecedented growth for this sector of the local economy.

The recent announcement by Volvo to develop approximately 900 acres in Berkeley County in

close proximity to Ridgeville is yet another major positive economic announcement. The

development of this site for a US manufacturing facility was announced in the Spring of 2015

and is projected to provide an upwards of $4.8 billion annual impact to the local economy, with

upwards of 4,000 new jobs projected at this facility within the next 10-year period.

Furthermore, Mercedes Benz Vans, which is a division of Daimler, announced plans for

construct a new plant facility and an investment of upwards of $500 million dollars within the

Palmetto Commerce Park. This plant is expected to add another 1,200 jobs in this market over

the next decade.

In summary, the combination of a high quality of life, relatively affordable housing options, a

diverse economy, the availability of public resources and utilities, effective local governments

and a stable overall economic base provides support for the continued growth and prosperity of

the Charleston Metropolitan Statistical Area.

27

CHARLESTON MSA LOCATION MAP

28

29

30

MARKET AREA LOCATION MAP

31

SITE ANALYSIS

The subject property is located at the physical address of 1000 Herbert Street in the City of

Charleston, Charleston County, South Carolina 29405. The subject property consists of a 4.22-

acre site which is currently zoned HI, Heavy Industrial District, by the City of Charleston.

Charleston County references the subject site as a portion of TMS #466-00-00-007.

The subject property is a portion of a larger tract of land which contains a total of 19.35 acres of

land. The specific subject property is a part of a larger tract of land which is utilized by the North

Charleston Sewer District for their operations center. There are many additional buildings, large

tanks and ancillary improvements on the subject site.

The subject property has been appraised as if a typical industrial building in the subject market.

We have utilized a reasonable Land to Building ratio, as well as GIS technology to provide a

reasonable estimate of the appropriate site for the subject building.

Based on a typical Land to Building Ratio, Parking Areas and typical access, we have estimated

the appropriate site for the subject property to have a total of 4.22 acres of land. Therefore, this

appraisal is based on the Hypothetical Condition that the appropriate site for the subject building

would be 4.22 acres of land. This site would include appropriate driveways, access and turn

around areas for large trucks, and would provide excellent utility for the current use. The

appropriate site is outlined on the tax map/aerial photograph shown below:

Site

32

According to the above exhibit, the subject site consists of a total of 4.22 acres of land which has

been improved with a two-story building which contains a total of 32,368 SF. As of the effective

date of December 11, 2018, the subject improvements contributed significantly to the value of

the underlying land in the “As Vacant” condition and provide excellent utility for many potential

users. The improvements have been utilized by the North Charleston Sewer District for their

operations center for many years.

The subject site is located in close proximity to the intersection of Herbert Street and Meeting

Street, near the I-26 interchange. Major commercial thoroughfares in the subject market area

include King Street Extension and Meeting Street. Each of these roadways is accessed

conveniently from the subject market area.

This is a heavy industrial area which is influenced by the location in close proximity to the

railroads and port facilities which are located in the immediate market area. Major corporations

such as Chevron, US Foods and Kinder Morgan have industrial facilities located in close

proximity to the subject property and major port terminals are located in close proximity the

subject.

The subject site is zoned HI, Heavy Industrial, by the City of Charleston, and the site provides

excellent utility for many potential uses. This is a rare zoning designation for the city as many

sites have been developed with alternate uses. There are very few vacant heavy industrial sites

available in the market. All public utilities are available to the subject site. Potential uses for the

subject site in the “As Vacant” condition would include large scale industrial development.

The site is displayed on FEMA Panel 45019C 504K. It appears that the subject property is

located in Flood Zone “X” and “AE” which is an area of flood hazard. This is typical for the

market area and does not detract from the overall utility of the site.

Please see the attached copies of the aerial photographs, tax maps, flood map and subject

photographs for further illustrations of the subject site.

33

AERIAL VIEW

34

FLOOD MAP

Subject Building

35

TRAFFIC COUNTS

36

DESCRIPTION OF IMPROVEMENTS

The subject property is located at the physical address of 1000 Herbert Street in Charleston, SC,

and was occupied by the North Charleston Sewer District as of the date of the inspection. The

subject building was considered to be of average overall quality and appeal in comparison to the

competitive set as of the date of the inspection. The subject property consists of a total of 32,

368 SF, divided between office/lab space (17,248 SF) and warehouse space (15,120 SF)

The subject building is a masonry structure with a brick veneer exterior. There are two distinct

property types within the subject building. The office/lab portion of the building contains a total

of 17,248 SF and contains the administrative offices, a laboratory, several break rooms,

conference rooms, individual offices, a training room and lobby/entrance. This portion of the

subject building is generally characterized as Class “B” office space. There is a dedicated lab

area within this office portion of the facility. Typical improvements include carpet/VCT

flooring, sheetrock walls, acoustical ceilings, average/fair quality cabinetry and a general average

overall finish. The space is functional and no functional obsolescence is noted. The entire office

portion of the facility is heated and cooled.

The industrial areas are considered to be of heavy industrial construction, with heavy industrial

grade concrete slabs, truck wells and overhead doors. The facility has a ceiling height of 50’,

which is atypical of the market and consistent with heavy industrial grade construction. General

interior features include heavy duty steel construction, significant mezzanine areas, scaffolding

and heavy industrial grade infrastructure.

The exterior of the facility is considered to be of average to good quality. There are several

marked parking areas, significant fencing and turn around areas for large trucks. This is a secure,

good quality heavy industrial facility which provides excellent physical utility for the current use.

We have estimated physical depreciation to be approximately 35% to 40%. No functional or

external obsolescence is noted.

A summary of the improvements is displayed on the following page.

37

SUBJECT BUILDING

32,368 SF

38

SCOPE OF THE APPRAISAL

Pursuant to the client’s request, we have prepared this appraisal report. The first basic step in

completing this report was considering the requirements for this report from the intended client,

Design Build Corporation. We have been instructed to provide an estimate of the Market Value

of the Fee Simple Estate of the subject property, as of the effective date of December 11, 2018.

We have completed the appraisal process, which includes the collection, confirmation, analysis, and

reporting of market data.

Details of the specific requirements for this particular client are outlined in the Engagement

Letter, which is included as an addendum to this report.

The subject property is a good quality, 32,368 SF building which has good locational

characteristics at 1000 Herbert Street in Charleston, SC. The property is a portion of the

operations center for the North Charleston Sewer Authority. The purpose of this appraisal is to

estimate the value of the underlying land, the value of the entire property, and the contributory

value of the improvements at the subject property.

In performing this appraisal, we have collected sufficient market data in order to provide

justification and support for the adjustments and value estimates which are utilized in this report.

The Scope of Work is described in the 2018-2019 edition of USPAP as including:

The extent to which the property is identified;

The extent to which tangible property is inspected;

The type and extent of data researched, and

The type and extent of analyses applied to arrive at opinions or conclusions.

A description of each of these factors is provided as follows:

39

The Extent to Which the Property is Identified

The appraiser has researched documents including deeds, plats and public records to provide for

the legal description of the subject property. Furthermore, we have reviewed aerial photographs,

tax maps and associated documents to properly identify the subject. We have reviewed floor

plans as of the effective date of this report. We have interviewed the property representatives to

provide an indication of the overall quality and condition of the facility as of the effective date of

this report. We have physically inspected the site and improvements.

The Extent to Which the Tangible Property is Inspected

The appraiser has physically inspected the subject property. We have done a thorough market

investigation and have inspected the subject and general market areas. We have reviewed

documents which provide an indication of the physical characteristics of the site and

improvements as of the effective date of this assignment. We have inspected each of the

comparables utilized in this report where possible and are familiar with the current factors which

influence the overall marketability of the subject property and the comparables used in this

report.

The Type and Extent of Data Researched

In preparing this appraisal report, we have thoroughly researched the market for similar

properties within the subject market area. We have utilized market studies as well as primary

data which were collected by the appraiser to provide an indication of current market values and

the general expectations of buyers and sellers in the current market. We have interviewed

brokers and market participants in order to provide further indication of current market

conditions.

Each sale comparable utilized in this report was independently verified by at least one party to

the transaction where possible. We have also considered current listings in our analysis. We

have adjusted our sales comparables based on several factors including market conditions as well

as quantifiable factors such as size, quality and locational factors.

40

The Type and Extent of Analysis Applied

We have analyzed the data collected and applied the appropriate methodology in order to provide

a value of the Fee Simple Interest in the subject property. We have analyzed the subject property

in the “As Vacant” condition and have determined the Highest and Best Use of the subject is to

develop the site with some type of Heavy Industrial Use. From there we have selected the most

relevant comparables and adjusted these comparables based on quantifiable market evidence.

From there we have selected the most relevant comparables and adjusted these comparables

based on quantifiable market evidence. After review of the engagement letter and after carefully

considering the Scope of this Assignment, we have determined that Sales Comparison Approach

is the most relevant approach in estimating the value of the subject property. The Cost Approach

has not been completed. This is due to the difficulties inherent in estimating

replacement/reproduction costs of a facility such as the subject.

The Income Approach has also not been completed. Typical market participants consider

primarily the sales approach when making purchase decisions in the current market and this is

the methodology employed in this appraisal.

We have compared the value of the underlying land with the value of the entire facility in order

to provide an indication of the contributory value of the improvements. This is a generally

accepted methodology in completing an assignment such as this.

We have reconciled our findings to provide a supportable value of the subject property. This

appraisal is intended to comply with the Uniform Standards of Professional Appraisal Practice,

2018-2019 edition.

41

HIGHEST AND BEST USE DEFINITION

Highest and Best Use is:

The reasonably probable and legal use of vacant land or an improved property,

which is physically possible, appropriately supported, financially feasible, and that

results in the highest value. The four criteria the highest and best use must meet are

legal permissibility, physical possibility, financial feasibility, and maximum

profitability.

Highest and Best Use of Land or a Site as Though Vacant is:

Among all reasonable, alternative uses, the use that yields the highest present land

value, after payments are made for labor, capital, and coordination. The use of a

property based on the assumption that the parcel of land is vacant or can be made

vacant by demolishing any improvements.

Highest and Best Use of Property as Improved is:

The use that should be made of a property as it exists. An existing property should

be renovated or retained as is so long as it continues to contribute to the total market

value of the property, or until the return from a new improvement would more than

offset the cost of demolishing the existing building and constructing a new one.1

1 American Institute of Real Estate Appraisers, the Dictionary of Real Estate Appraisal,

(Chicago, Illinois).

42

HIGHEST AND BEST USE AS VACANT

Legally Permissible:

The subject site is zoned HI, Heavy Industrial District, by the City of Charleston Planning and

Zoning Department. Permitted uses include heavy industrial, light industrial and several alternate

uses as specifically allowed by the specific land use plan for certain areas. Each of these uses

would be a legal and conforming use of the subject.

Physically Possible:

The subject site contains 4.22 acres and is physically large enough to support several legally

permissible commercial uses. The subject site has good locational characteristics within a

limited number of areas within the City of Charleston that are zoned for heavy industrial uses.

The subject site is relatively rectangular in shape, and has excellent access and exposure to the

subject market. All utilities are available to the subject site. Therefore, based on the locational

and functional characteristics of the site, the site is physically possible to be developed with a

heavy industrial and/or light industrial use.

Financially Feasible:

The subject site is located along Herbert Street in an area which has traditionally been a heavy

industrial area of the City of Charleston. The site is located in close proximity to major industrial

areas which are occupied by large corporations such as US Foods, Kinder Morgan and Chevron.

There are several port related users in the immediate market area, and access and exposure to and

from both major interstates, railways and port related operations is considered to be excellent.

Demand for heavy industrially zoned acreage in the subject market is considered to be strong at

this time.

Potential development options for the subject in the “As Vacant” condition would be heavy

industrial, light industrial, office or similar uses. However, due to the relative scarcity of heavy

industrial sites in the area, it is likely that land prices would dictate the use to be a heavy

industrial application.

43

Based on the surrounding land use patterns it would appear that some type of heavy industrial

development would be a financially feasible use of the site in the “As Vacant” condition.

The subject property is located in close proximity to Shipyard Creek, which is located near Myers

Bend of the Cooper River. This is a main industrial branch of the Cooper River which has a

depth of 32’ at mean tide. There are several parcels which feature docks on Shipyard Creek;

other improvements include shipyards, oil terminals and dredging operations. This is a major

waterfront, industrial area for the Charleston MSA. It is important to note that the subject site

does not have frontage along Shipyard Creek.

Maximally Productive:

The site enjoys excellent locational characteristics within the subject market area. The location of

the subject site in close proximity to major, port and logistical demand generators within the

Charleston area provides for good overall utility for many types of potential uses in the “As Vacant”

condition.

Based on our analysis, it is our opinion that the highest and best use of the subject site as vacant

would be for some type of Heavy Industrial Development. This is the use that would produce

the highest net return and yield the greatest benefits to the subject site.

44

HIGHEST AND BEST USE AS IMPROVED

All of the conditions previously noted in the Highest and Best Use as Vacant section are also

applicable to the subject space as improved as of the effective date of this appraisal. Factors

considered when evaluating this property include its convenient location, the relatively large size of

the improvements as well as the stable growth the market area has experienced over the past

decade.

The subject property is currently improved with a 32,368 SF building which has been occupied by

the North Charleston Sewer Authority for many years. The current configuration appears to be a

reasonable use of the subject improvements. The current floor plan provides good utility for the

current use.

Based on our analysis, it is our opinion that the highest and best use of the subject site as improved

would be its use as an Heavy Industrial Facility which utilizes the current footprint/floorplan of

the building.

We believe the most likely purchaser of the subject property would be an owner-user. We believe

that a typical purchaser would expect a holding period of ten years or greater.

45

EXPOSURE PERIOD

Exposure Period is defined as the estimated length of time the property interest being appraised

would have been offered on the market prior to the hypothetical consummation of a sale at market

value on the effective date of this appraisal; a retrospective opinion based on an analysis of past

events assuming a competitive an open market.

Each of the sales in our analysis was confirmed to have been purchased within a one-year

marketing period. Therefore, based on our analysis, we have estimated an appropriate Exposure

Period for the subject to be within a one-year period.

MARKETING PERIOD

Marketing Period is defined as the length of time the subject property would be exposed to the

market, as if offered for sale as of the effective date of this appraisal at the appraised value until the

close of a sale.

Based on our analysis, we have estimated a Marketing Period of one year or less for the subject

property.

46

VALUATION METHODOLOGY

The valuation process begins when an appraiser identifies the appraisal problem and ends when he

or she reports a conclusion to the client. Each parcel of real property is unique and many different

types of value can be estimated for a single property. The most common appraisal assignment is

performed to estimate market value and the valuation process contains all the steps appropriate to

this type of assignment. The model also provides the framework for estimating any other defined

value. Consulting assignments often call for value estimates, which are derived through

modification of the valuation process.

The valuation process is accomplished through specific steps. The number of steps followed

depends on the nature of the appraisal assignment and the data available. The model indicates a

pattern that can be used in any appraisal assignment to perform market research and data analysis,

to apply appraisal techniques, and to integrate the results of these activities into an estimate of

defined value.

Research begins after the appraisal problem has been defined. The analysis of data relevant to the

problem starts with an investigation of trends observed at all market levels - international, national,

regional, community, and neighborhood. This examination will help the appraiser understand the

interrelationships among the principles, forces, and factors that affect real property value in the

specific area. It also provides raw data from which to extract quantitative information and other

evidence of market trends such as positive or negative percentage changes in property value over a

number of years, the population movement into an area, and the number of employment

opportunities available and their effect on the purchasing power of potential property users. These

data can be analyzed and employed to estimate a defined value.

Traditionally, appraisal techniques are the specific procedures within the three approaches that are

applied to derive indications of real property value. One or more approaches to value may be used

depending on their applicability to the particular appraisal assignment.

47

In assignments to estimate market value, the ultimate goal of the valuation process is a well-

supported value conclusion that reflects all the factors that influence the market value of the

property being appraised. To achieve this goal, an appraiser typically studies a property from three

different viewpoints, which correspond to the three traditional approaches to value.

1. The value indicated by recent sales of comparable properties in the market -the sales

comparison approach.

2. The current cost of reproducing or replacing improvements, minus the loss in value

from depreciation, plus site value - the cost approach.

3. The value of a property's earning power based on the capitalization of its income -

the income capitalization approach.

The three approaches are interrelated; each requires the gathering and analysis of cost, sales, and

income data that pertain to the property being appraised.

From the approaches applied, the appraiser derives separate indications of value for the property

being appraised. One or more of the approaches may not be applicable to a specific assignment or

may be less reliable due to the nature of the property, the needs of the client, or the data available.

To complete the valuation process, the appraiser integrates the information drawn from market

research and data analysis and from the application of approaches to form a value conclusion. This

conclusion may be presented as a single point estimate of value or as a range within which the value

may fall. An effective integration of all the elements in the process depends on the appraiser's skill,

experience, and judgement.2

2 The Appraisal of Real Estate, AIREA, 875 North Michigan Avenue, Chicago, Illinois 60611

48

ESTIMATE OF LAND VALUE

The major principal of the Direct Sales Comparison Approach is that no prudent purchaser would

pay more for a property than the price of similar properties that have recently sold in the

competing market place. The subject property consists of a 4.22 acre parcel located at 1000

Herbert Street in the City of Charleston, South Carolina 29405. The site is zoned for Heavy

Industrial Use, which is a positive characteristic of the subject property.

We have found several sales of similar properties and have adjusted these sales for location,

quality and size. We have utilized Price Per Acre as the unit of comparison.

A discussion of these sales is displayed below:

Land Sale #1 – This is the sale of a 4.90 acre industrial site located at 4341 Dorchester Road in

North Charleston, South Carolina. This property sold on August 30, 2017 for a price of

$1,180,000, or $240,816 per acre. No market conditions adjustment is necessary. Locationally,

this site is superior to the subject property and is adjusted by -10%. This sale indicates a value of

$216,374 per acre for the subject.

Land Sale #2– This is the sale of a 9.31 acre industrial site located along Spruill Avenue in

North Charleston, South Carolina. This property sold on February 28, 2017 for a price of

$2,100,000, or $225,564 per acre. No market conditions adjustment is necessary. Locationally,

this site is superior to the subject property due to the frontage along a commercial thoroughfare.

We have adjusted downward by 20%. A size adjustment of +20% is also necessary. This sale

indicates a value of $225,564 per acre for the subject.

49

Land Sale #3 – This is the sale of a 0.99 acre industrial site located along Fain Street in North

Charleston, South Carolina. This property sold on January 20, 2017 for a price of $235,000, or

$237,374 per acre. No market conditions adjustment is necessary. We have adjusted by -15%

for size and +5% for location. This sale indicates a value of $225,505 per acre for the subject.

Land Sale #4 – This is the sale of a 3.76 acre industrial site located along Pace Street, in the

Stark Industrial Park in North Charleston, South Carolina. This property sold on November 30,

2016 for a price of $800,000, or $212,766 per acre. No market conditions adjustment is

necessary. This is a very similar property in comparison to the subject land and requires no

adjustment.

The sales displayed above indicate a range in value for the subject of $216,374 per acre to

upwards of $225,564 per acre. Based on our analysis, we believe the subject property is best

indicated by a price that is in the middle of the indicated range, or $220,000 per acre.

The subject site consists of a total of 4.22 acres. Multiplying this by the price per acre of

$220,000 provides the value of the underlying land of $928,400 which we have rounded to

$930,000. ($220,000/acre X 4.22 acres = $928,400, or $930,000)

Therefore, we have estimated the value of the subject site, as of the effective date of December

11, 2018, to be:


$930,000

50

COMPARABLE LAND SALES SUMMARY TABLE

No. Location Sale Date

Price Size in Acres

Price/ Acre

1. 4341 Dorchester Road 08/30/2017 $1,180,000 4.900 $240,816

2. Spruill Avenue 02/28/2017 $2,100,000 9.310 $225,564

3. Fain Street. 01/20/2017 $235,000 0.990 $225,505

4. Pace Street 11/30/2016 $800,000 3.760 $212,766

LAND SALES LOCATION MAP

51

Land Sale No. 1

Property Identification

Record ID 5263

Property Type Industrial Site

Property Name Industrial Site

Address 4341 Dorchester Rd., North Charleston, Charleston County, South Carolina

29405

Location Dorchester Rd. b/t I-26 and I-526

Tax ID 411-09-00-035

MSA Charleston

Market Type Industrial Land

Sale Data

Grantor J CAS Properties, LLC

Grantee Charleston County

Sale Date August 30, 2017

Deed Book/Page 0663/227

Property Rights Fee Simple

Marketing Time 620 days

Verification Other sources: MLS, CoStar, Public Records, Confirmed by Robert Terry, III

Sale Price $1,180,000

Cash Equivalent $1,180,000

Land Data

Zoning Light Industrial, M-1 (Light Industrial)

Topography Level

Utilities To Site

Shape Irregular

Land Size Information

Gross Land Size 4.900 Acres or 213,444 SF

Indicators

Sale Price/Gross Acre $240,816

Sale Price/Gross SF $5.53

Remarks

Light industrial site located along Dorchester Road in between I-26 and I-526. Property was purchased by county in

what we consider an arms length transaction; development plans were unknown.

52

Land Sale No. 2


Record ID 5262

Property Type Industrial, Industrial Land

Property Name Knights Concrete Site

Address Spruill Avenue, North Charleston, Charleston County, South Carolina 29405

Location North Charleston

Tax ID 466-04-00-013

Sale Data

Grantor SC DOT

Grantee KRM Park South, LLC

Sale Date February 28, 2017



Financing Conventional

Verification December 27, 2017; Other sources: Tax Records, Deed, Confirmed by Clark

Truluck, MAI



Land Data

Zoning M-1 (Light Industrial)

Topography Level at Grade

Utilities Public

Dimensions Multiple

Shape Rectangular

Rail Service Yes

Flood Info Zone "A and AE"

User 5 45019C 0520K

User 6 Moderate to High Risk



Front Footage 465 ft Spruill Ave;

Indicators



Remarks

This is the sale of a 9.31 acre tract of land located on Spruill Avenue in North Charleston. The site was purchased on

February 28, 2017 for $2,100,000 or $225,564/acre. The buyer is Knights Companies, who is using the site as a

concrete plant.

53

Land Sale No. 3


Record ID 5092

Property Type Light Industrial Land, Light Industrial

Property Name Light Industrial Land

Address 0 Fain St., North Charleston, Charleston County, South Carolina 29406

Tax ID 475-00-00-017

MSA Charleston

Market Type Light Industrial Land

Sale Data

Grantor AWS Investments, LLC

Grantee Tarrant and Batten, LLC

Sale Date January 20, 2017


Marketing Time 379 days

Verification Other sources: MLS, CoStar, Public Records, Confirmed by Robert Terry, III

Sale Price $235,000

Cash Equivalent $235,000

Land Data

Zoning Light Industrial, M-1 (Light Industrial)

Topography Level

Utilities To Site

Shape Flag Shaped



Indicators



Remarks

Property features visibility along I-26. One of the last vacant sites along Fain Street. The final sales price agreed upon

was $235,000.

54

Land Sale No. 4


Record ID 5451

Property Type Industrial Land

Property Name Heavy Industrial Site

Address Pace Street, North Charleston, Charleston County, South Carolina

Location Stark Industrial Park

Tax ID 412-01-00-009

MSA Charleston

Sale Data

Grantor XJM Company LLC

Grantee Port City Concrete Land LLC

Sale Date November 30, 2016

Deed Book/Page 0600-0645


Conditions of Sale Arm's Length

Verification Grantor Rep

Sale Price $800,000

Cash Equivalent $800,000

Land Data

Zoning Heavy Industrial

Topography Flat



Indicators



Remarks

This is the sale of a 3.70 acre tract of heavy industrial land located along Pace Street, within the Stark Industrial Park in

the City of North Charleston, SC. This site was purchased in November of 2016 for a price of $800,000, or $212,766

per acre.

55

LAND SALES ADJUSTMENT CHART

Transaction No.: 1 2 3 4

Type Transaction: Sale Sale Sale Sale

Date of Sale: 08/17 02/17 01/17 11/16

Sale Price/Acre $240,816 $225,564 $237,374 $212,766

Motivation/Sales Conditions: -0- -0- -0- -0-

Adjusted Price/Acre: 240,816 $225,564 $237,374 $212,766

Market Conditions Adjustment: -0- -0- -0- -0-

Adj. Price/Acre: $240,816 $225,564 $237,374 $212,766

ADJUSTMENTS:

Size: -0- +20% -15% -0-

Location: -10% -20% +5% -0-

Utility: -0- -0- -0- -0-

Net Adjustment: -10% -0- -10% -0-

Adjusted Price/Acre: $216,374 $225,564 $225,505 $212,766

56

DIRECT SALES COMPARISON APPROACH

The major premise of the Sales Comparison Approach to Value is that no prudent purchaser

would pay more for a property than the cost to acquire a property of similar utility in the

competing market. The principles that apply are those of substitution, supply and demand, and

externalities. There are many different units of comparison used to develop a pattern of indicated

value for properties. The following units of comparison are the most commonly used in valuing

properties such as the subject.

Gross Income (Rent) Multipliers: The Gross Income Multiplier (GIM) is the

ratio of sale price and gross potential income. The Effective Gross Income

Multiplier (EGIM) is the ratio of sale price and effective gross income. This

method is meaningful when there are sufficient numbers of comparable sales that

have similar expense ratios as compared to the subject property. This unit of

comparison is often used in conjunction with others.

Dollars per Square Foot: Dollars per S.F. ($/S.F.) is the direct ratio of the sale

price of a property and the building area in square feet.

The appraisers have searched for sales of similar size and utility within the subject market.

Dollars per square foot has been chosen as the appropriate unit of comparison. The subject

property is a good quality restaurant facility in an excellent location. The underlying land value

is significant and provides for an excellent location for many potential users.

In order to provide a reasonable indication of value for the subject, we have searched to find

comparable sales of industrial facilities which provide similar investment characteristics when

compared to the subject. We have adjusted these sales for location, size and quality of

improvements. We have not adjusted any of these sales for market conditions.

These sales are described below:

57

Improved Sale #1 is the sale of a 22,500 SF industrial building located at 1003 Bankston Circle

in Hanahan, South Carolina. This property was purchased on April 23, 2018 for a price of

$1,750,000, or $77.78/SF. No market conditions adjustment is necessary. With regard to size no

adjustment is necessary. However, we have adjusted this sale to reflect the superior condition of

the comparable by -5%. A +15% location adjustment is also necessary. No further adjustment is

necessary. This sale has a Net Adjustment of +10% and indicates a value of $85.55/SF.

Improved Sale #2 is the sale of a 27,450 SF industrial building located at 1853 Belgrade

Boulevard in Charleston, South Carolina. This property was purchased on January 5, 2018 for a

price of $2,000,000, or $72.07/SF. No market conditions adjustment is necessary. With regard

to size no adjustment is necessary. A +10% location adjustment is necessary. No further

adjustment is necessary. This sale indicates a value of $79.27/SF.

Improved Sale #3 is the sale of a 88,288 SF industrial building located 1770 Hock Avenue in

Charleston, South Carolina. This property was purchased on April 4, 2018 for a price of

$6,000,000, or $67.96/SF. No market conditions adjustment is necessary. With regard to size a

+15% adjustment is necessary. A +10% location adjustment is also necessary. No further

adjustment is necessary. This sale has a Net Adjustment of +25% and indicates a value of

$84.95/SF. .

Improved Sale #4 is the sale of a 50,000 SF industrial building located at 1950 Hanahan Road in

Hanahan, South Carolina. This property was purchased on April 23, 2018 for a price of

$3,750,000, or $75.00/SF. No market conditions adjustment is necessary. With regard to size a

+5% adjustment is necessary. We have adjusted this sale to reflect the superior condition of the

comparable by -10%. A +15% location adjustment is also necessary. No further adjustment is

necessary. This sale has a Net Adjustment of +10% and indicates a value of $82.50/SF.

58

Improved Sale #5 is the sale of a 18,500 SF industrial building located at 2781 Three Lakes

Road in North Charleston, South Carolina. This property was purchased on November 4, 2016

for a price of $1,850,000, or $100.00/SF. No market conditions adjustment is necessary. With

regard to size no adjustment is necessary. However, we have adjusted this sale to reflect the

superior condition of the comparable by -10%. This sale has a Net Adjustment of -10% and

indicates a value of $90.00/SF.

The properties displayed above are of comparable properties which provide an excellent

indication of market value. The adjusted values range from $79.27/SF to upwards of $90.00/SF.

Based on our analysis, we believe that the subject property falls within the middle of the

indicated range at $85.00/SF.

The subject property consists of 32,368 SF, which indicates a value of $2,751,280 rounded to

$2,750,000. Therefore, it is our opinion that the market value of the subject property, as of the



$2,750,000

59

IMPROVED SALES SUMMARY TABLE

No. Location Sale Date Price Building Size

(SF)

Price/ SF

1. 1003 Bankton Circle 04/23/2018 $1,750,000 22,500 $77.78

2. 1856 Belgrade Blvd 01/05/2018 $2,000,000 27,750 $72.07

3. 1770 Hock Avenue 04/04/2018 $6,000,000 88,288 $67.96

4. 1950 Hanahan Road 06/26/2017 $3,750,000 50,000 $75.00

5. 2781 Three Lakes Road 11/04/2016 $1,850,000 18,500 $100.00

IMPROVED SALES LOCATION MAP

60

Improved Sales #1 and #2

61

Improved Sales #3 and #4

62

Improved Sale #5

63

Improved Sale No. 1


Record ID 4757

Property Type Industrial, Industrial

Property Name Industrial Building

Address 1003 Bankton Circle, Hanahan, Berkeley County, South Carolina 29410

Tax ID 266-09-00-020

MSA Charleston

Market Type Industrial

Sale Data

Grantor North Rhett Industrial Associates

Grantee Grandresch 2, LLC

Sale Date April 23, 2018

Property Rights Leased Fee

Verification Other sources: CoStar, Public Records, Confirmed by Robert Terry, III



Land Data

Land Size 1.910 Acres or 83,200 SF

Zoning Industrial (City of Hanahan), Industrial

Topography Level

Utilities All to Site

General Physical Data

Building Type Single Tenant

Gross SF 22,500 per marketing material

Indicators


Remarks

Building includes approximately 2,350 square feet of finished space with the remainder being clear span warehouse

with a 16' eave. The property includes several drive-in doors and a truck well/loading dock.

64

Improved Sale No. 2


Record ID 4672

Property Type Light Industrial, Flex Building

Property Name 1856 Belgrade Blvd

Address 1856 Belgrade Blvd, Charleston, Charleston County, South Carolina 29407

Location On Belgrade 1/2 mile from Sam Rittenberg Ave

Tax ID 351-14-00-035

MSA Charleston

Market Type Light Industrial

Sale Data

Grantor Warren Ostergard, et al

Grantee 1856 Belgrade Ave, LLC

Sale Date January 05, 2018


Recorded Plat BP/125

Property Rights leased fee

Conditions of Sale conventional sale

Verification Russell Canard, Buyer; March 15, 2018; Other sources: deed , tax record,

buyer, Confirmed by Paul K. Moore, MAI


Land Data


Zoning Community Commercial



SF 27,750 three building

Construction Type pre engineered

Roof Type metal roof

Foundation concrete slab

Stories one

Year Built 1987

Indicators

Sale Price/ SF $72.07

Remarks

The property contains three buildings with 27,750 sf The property has 3 phase 240/460 power. The property has 14

eave height and 16 center height. The property was about 85% leased up at time of sale. The new owner would not

discuss the rental income nor the NOI. But did say the new space was offered at $11.50/SF net

65

Improved Sale No. 3


Record ID 4716

Property Type Industrial Building, Warehouse

Property Name Warehouse Building

Address 1770 Hock Avenue, North Charleston, Charleston County, South Carolina


Tax ID 470-05-00-004

MSA Charleston

Sale Data

Grantor Commerce Industrial LLC

Grantee 1770 Hock Avenue LLC

Sale Date April 04, 2018



Verification Hagood Morrison, Broker; Other sources: our inspection, Confirmed by Paul

K. Moore, MAI


Land Data


Zoning Industrial

Topography Flat

Utilities Available

Shape Rectangular

Landscaping Minimal

Flood Info "X" - Not in Hazard Area

Income Analysis

Net Operating Income $419,368

Indicators

Sale Price/ SF $67.96

Floor Area Ratio 0.56

Land to Building Ratio 1.8:1

Occupancy at Sale 100

Overall or Cap Rate 6.99%

Net Operating Income/Sq. Ft. $4.75

Remarks

This is the sale of an 88,288 SF, average quality industrial building located at 1770 Hock Avenue in the City of North

Charleston, SC. This property was originally constructed in 1981 and was purchased in April of 2018 for a price of

$6,000,000, or $67.96/SF. This building was a single-tenant building which was purchased for income generating

characteristics. The new tenant was Georgia Marine, who signed a new lease commencing in August of 2017.

The building featured approximately 4,200 SF of office with the remaining space being basic warehouse/distribution

space.

66

Improved Sale No. 4


Record ID 4696

Property Type Industrial, Manufacturing

Address 1950 Hanahan Road, North Charleston, Charleston County, South Carolina

29445


Tax ID 475-08-00-020/021/022

Sale Data

Grantor FJT Holding

Grantee Buist, Buyers & Taylors, LLC

Sale Date June 26, 2017


Property Rights Leased Fee

Marketing Time 84 Days


Financing Cash to Seller

Verification March 20, 2018; Other sources: Costar, Deed, Tax Records, Confirmed by

Clark Truluck, MAI



Land Data


Zoning Industrial

Topography Level at Grade

Utilities Public

Dimensions Multiple

Shape Irregular

Landscaping Adequate

Rail Service No

Fencing No

Flood Info Zone X

User 5 Map #45019C 0295K



Gross SF 50,000

Area Breakdown Office 15,352

Warehouse 34,648

Sprinklers Yes

Year Built 1995 Renovated

Condition Good

Indicators


Remarks

This is the sale of a 50,000 SF industrial facility located at 1950 Hanahan road in North Charleston, SC. It sold on

June 26, 2017 for $3,750,000 or $75/SF. The building includes 15,352 SF (31%) of office and 34,648 SF (69%) of

manufacturing/warehouse space. The was a tenant in the building who was paying $8/SF Net and this lease expires in

January 2019. Also included with this sale were two parcels of land to the rear of the building that were considered to

be wetlands and did not provide significant value.

67

Improved Sale No. 5


Record ID 4486

Property Type Warehouse

Property Name Warehouse Building

Address 2781 Three Lakes Road, North Charleston, Charleston County,

South Carolina


Tax ID 409-15-00-010

MSA Charleston

Sale Data

Grantor Marsh Co of Charleston LLC

Grantee George Cuthbert III

Sale Date November 04, 2016




Verification Our Appraisal; Sales Contract



Adjusted Price $1,850,000

Land Data


Topography Flat

Utilities Available



Gross SF 18,500

Indicators


Floor Area Ratio 0.17

Land to Building Ratio 5.82:1

Remarks

This is the sale of a good quality, 18,500 SF office/warehouse building located along Three

Lakes Road in the City of North Charleston, SC. This property was purchased with a tenant in

place in November of 2016 for a price of $1,850,000, or $100.00/SF. This is a good quality

industrial building located in close proximity to I-26 and rail access.

68

IMPROVED SALES ADJUSTMENT CHART

Transaction No.: 1 2 3 4 5

Type Transaction: Sale Sale Sale Sale Sale

Sales Price: $1,750,000 $2,000,000 $6,000,000 $3,750,000 $1,850,000

Sale Price/Square Foot: $77.78 $72.07 $67.96 $75.00 $100.00

Motivation/Sales Conditions: -0- -0- -0- -0- -0-

Adjusted Price/Square Foot: $77.78 $72.07 $67.96 $75.00 $100.00

Market Conditions Adjustment: -0- -0- -0- -0- -0-

Adj. Price/Unit: $77.78 $72.07 $67.96 $75.00 $100.00

ADJUSTMENTS:

Size: -0- -0- +15% +5% -0-

Quality: -5% -0- +10% -10% -10%

Location: +15% +10% -0- +15% -0-

Net Adjustment: +10% +10% +25% +10% -10%

Adjusted Price/SF: $85.55 $79.27 $84.95 $82.50 $90.00

69

FINAL RECONCILIATION

The subject property is an owner occupied facility which is currently being utilized for the

operations center for the North Charleston Sewer Authority. The subject property is an average

quality facility which provides excellent utility for the current use. In our analysis, we have

completed an appraisal utilizing the Direct Sales Comparison Approach to value. This approach

best reflect the typical actions of buyers and sellers in the market and give the most reliable

indication of value for this type of property.

The current improvements provide significantly utility to the subject property as compared to the

“As Vacant” condition.

Therefore, based on our analysis, it is our opinion that the value of the subject property, as of the



$2,750,000





$930,000





$1,820,000

70

GENERAL LIMITING CONDITIONS

This appraisal report has been made with, and is subject to, the following General Limiting

Conditions:

The appraiser(s), by reason of this appraisal report, are not required to give further

consultation, testimony, or to be in attendance in court or at any governmental or other

hearing with reference to the property without prior arrangements.

The distribution, if any, of the total valuation in this report between land and improvements, if

any, applies only under the stated program of utilization. The separated allocations for land

and buildings, if any, must not be used in conjunction with any other appraisal and are invalid

if so used.

Use and disclosure of the content of this report are governed by the bylaws and regulations of

the Appraisal Institute. Neither all nor any part of the contents of this report (especially any

conclusions as to the value, the identity of the appraisers or the firm with which they are

connected, or any reference to the Appraisal Institute to the MAI or SRA designations) shall be

disseminated to the general public through advertising or sales media, public relations media,

news media, or other public means of communication without the prior written consent and

approval of the appraiser(s).

Possession of this report, or a copy thereof, does not carry with it the right of publication. It

may not be used for any purpose by any person other than the party to whom it is addressed

without consent of the appraiser, and in any event only with proper written qualifications and

only in its entirety.

The party for whom this appraisal report was prepared may distribute copies of this appraisal

report in its entirety, to such third parties as may be selected by the party for whom this

appraisal report was prepared. However, portions of this appraisal report shall not be given to

third parties without the prior written consent of the signatories of this appraisal report.

Paul K. Moore & Associates, Inc. has prepared this appraisal for the exclusive use of the stated

client. The information and opinions contained in this appraisal set forth the appraiser's best

judgement in light of the information available at the time of the preparation of this report. Any

use of this appraisal by any other person or entity, or any reliance or decisions based on this

appraisal, are the sole responsibility and at the sole risk of the third party. Paul K. Moore &

Associates, Inc. nor the appraiser(s) accept any responsibility for damages suffered by any third

party as a result of reliance or decisions made or actions taken based on this report.

Additional copies of this appraisal may be obtained for an appropriate fee only with the

knowledge and consent of the client.

71

GENERAL AND UNDERLYING ASSUMPTIONS

This appraisal report has been made with, and is subject to, the following general assumptions:

That title to the property is assumed to be good and marketable unless otherwise stated. No

responsibility is assumed for the legal descriptions or for any legal matter.

That the definition of value together with other definitions and assumptions on which our

analyses are based are set forth in appropriate sections of this report and are a part of these

General Assumptions as if included here in their entirety.

That title to the property is assumed to be marketable. The property is considered to be under

responsible ownership and management and free of all liens and encumbrances except as

specifically discussed herein.

That the facts, estimates, and opinions furnished the appraiser(s) by others and contained in this

report are considered to be from reliable sources and where feasible have been verified.

However, no responsibility is assumed for the accuracy of the information. We reserve the right

to modify the value estimates should more reliable or accurate information become available

subsequent to delivery of this report.

All engineering and/or surveys are assumed to be correct. The sketches, plot plans, and

drawings included in the report are included only to assist the reader in visualizing the property.

It is assumed that there are no hidden or other unapparent conditions in the soil, subsoil,

structures, or property, which would render them more or less valuable. The appraiser

specifically accepts no responsibility for damage by termites, woodborers or any other wood-

infesting insects.

No responsibility is assumed for such conditions or for engineering or inspections that would be

required to discover them.

Unless otherwise stated in this report, the existence of hazardous material, which may or may

not be present on or in the property, was not observed by the appraiser. The appraiser has no

knowledge of the existence of such materials on, in, or near the property. The appraiser,

however, is not qualified to detect such substances.

The presence of potentially dangerous or hazardous materials, gases, or toxic substances may

effect the value of the property and in this appraisal the value estimate is predicated on the

assumption that there is no such element on, in, or near the property that would cause a loss in

value. No responsibility is assumed for any such conditions or for any expertise or engineering

knowledge required to discover them.

72

Good structural and mechanical conditions are assumed to exist and no opinion as to these

matters is to be inferred or constructed from the attached report.

It is assumed that there is full compliance with all applicable federal, state, and local

environmental regulations and laws unless non-compliance is stated, defined, and considered in

the appraisal report.

It is assumed that all required licenses, certificates of occupancy, legislated or administrative

consents from any local, state, or national governmental or private entity or organization have

been or can be obtained or renewed for any use on which the value estimate contained in this

report is based.

It is assumed that the utilization of the land and/or improvements is within the boundaries or

property lines of the property described herein and that there is no encroachment or trespass

unless noted within the report.

The Americans with Disabilities Act of 1990 ("ADA") became effective January 26, 1992. I

(we) have not made a specific compliance survey and analysis of this property to determine

whether or not it is in conformity with the various detailed requirements of the ADA. It is

possible that a compliance survey of the property, together with a detailed analysis of the

requirements of the ADA, could reveal that the property is not in compliance with one or more

of the requirements of the Act. If so, this fact could have a negative effect upon the value of

the property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider

possible non-compliance with the requirements of the ADA in estimating the value of the

property.

The subject property may or may not be located in or adjacent to a wetland area. The appraisers

are not qualified in the area of engineering pertaining to the determination of wetlands.

Therefore, the appraisers are unable to determine the wetland status of the subject property.

The appraisers assume the appropriate permit, if required, can be or has been obtained from the

U.S. Army Corps of Engineers. The appraisers also assume that the jurisdictional

determination study and/or permit regarding construction in a wetlands area, if required, does

not result in the alteration of the subject property description contained in this appraisal report.

The appraiser has examined flood maps provided by the Federal Emergency Management

Agency (FEMA) and has noted whether the subject property is located in a special flood

hazardous area. We are not experts in Flood Zone delineation and make no guarantee regarding

the determination since we are not surveyors. Final determination should be made by a licensed

surveyor or engineer.

Unless otherwise noted in the appraisal report, the estimated market value does not include any

personal property, fixtures or other non-real estate items.

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QUALIFICATIONS OF THE APPRAISER

James Henderson Martin, MAI

Professional Designations/Affiliations

South Carolina State Certified General Real Estate Appraiser #4580 02/03 - Present

North Carolina State Certified General Real Estate Appraiser #A6270 10/06 - Present

Georgia State Certified General Real Estate Appraiser #4580 08/15 - Present

Florida State Certified General Real Estate Appraiser #A6270 08/15 – 11/16

MAI - The Appraisal Institute 08/11- Present

Education

Oglethorpe University, Atlanta, Georgia

Bachelor of Science-Accounting May 1998

Appraisal Institute Leadership Roles

Appraisal Journal Editorial Board, National Member 2017-2019

SC Chapter of the Appraisal Institute – Member, Board of Directors 2015 - 2018

SC Chapter of the Appraisal Institute – Vice President 2018

SC Chapter of the Appraisal Institute – Chapter Treasurer / Finance Chairman 2017

SC Chapter of the Appraisal Institute – Chapter Secretary 2016

2012 & 2014 Leadership Development Advisory Conference – Appraisal Institute May 2012/2014

Appraisal Institute – South Carolina Education Committee Member

2013

Appraisal Institute – South Carolina Candidate Guidance Committee Chairman 2014-2016

Appraisal Institute – National Committee – University Relations Panel 2014 - 2016

Professional Experience

Paul K. Moore & Associates, Inc. - Mt. Pleasant, S.C.

Commercial Real Estate Appraiser January 2003 – Present

McColgan & Company, Inc. – Atlanta, Georgia August 2000-March 2002

Research Analyst-Commercial Real Estate

Expert Witness, US Bankruptcy Court January 2012 – Present

Member, Charleston County Board of Assessment Appeals March 2012 - Present

Property Types Appraised

Mixed-Use Developments Residential Subdivisions

Multi Family Residential Professional Office

Retail Developments Medical Office

Office Developments Warehouse/Light Industrial

Hotels/Motels Extended Stay Facilities

Commercial Land Industrial Facilities

Conservation Easements Churches/Schools

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QUALIFICATIONS OF THE APPRAISER

PAUL K. MOORE, MAI, SRA, AI-GRS

APPRAISER DESIGNATIONS:

Appraisal Institute - MAI, SRA, AI-GRS Member #44877

Currently Certified under the Appraisal Institute Mandatory Continuing Education Program

APPRAISAL CERTIFICATION:

South Carolina State Certified General Real Estate Appraiser - #CG-155

South Carolina Broker License - Office Code 1769

Georgia State Certified General Real Property Appraiser - #CG-006111

North Carolina State Certified General Real Estate Appraiser - #CG-A1353

Florida State Certified General Appraiser- #RZ3762

PROFESSIONAL EDUCATION:

Graduate, University of South Carolina, Columbia, S.C.

B.S. Degree in Business Administration - 1973

PROFESSIONAL EXPERIENCE:

First Federal Savings & Loan of Charleston 1974 to 1980

Licensed Real Estate Broker 1981-Present

Licensed Fee Appraiser 1981-Present

Paul K. Moore & Associates, Inc. (President/Owner) 1992-Present 1983

SRA 1979 1979-Present

MAI 1983

AI-GRS 2014

Forty years of experience in sales and appraising property types which include: single family, multi-family, automobile

dealerships, golf courses, financial institutions, condos, office buildings, industrial/manufacturing facilities, warehouses,

and various retail and lodging facilities.

PROFESSIONAL AND PUBLIC ORGANIZATIONS:

President - Charleston Chapter of Society of Real Estate Appraisers - 1987

President - South Carolina Chapter of the Appraisal Institute - 1991

Appraisal Institute - MAI, SRA , AI-GRS Present

Realtor - Charleston Trident Board of Realtors, Inc. - Present

Charleston County Board of Assessment Appeals - 1993-1995

Board of Directors Dunes West Neighborhoods POA 2011-13

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APPRAISAL CLIENTS SERVED:

Branch Banking & Trust Company Savannah /Hilton Head Aviation Authority

Tidelands Bank South Carolina Federal Credit Union

Webster Bank NA Hess Oil Company

TD Bank Zions Bank

Conway National Bank Southcoast Community Bank

South Carolina Bank & Trust Moore and Van Allan PLLC

PNC Bank United Community Bank of Georgia

U.S. Army Corps of Engineers South State Bank

Farmers and Merchants Bank Wells Fargo Bank

First Citizens Bank & Trust Harbor National Bank

Charleston County Aviation Authority First South Bank

Santee Cooper Electric Co-op Cities of Charleston and N. Charleston

Bank of the Ozarks Park Sterling Bank

Regions Bank Apex Mortgage Corporation

Property Types Appraised

Mixed-Use Developments Residential Subdivisions

Multi- Family Residential Professional Office

Retail Developments Medical Office

Office Developments Warehouse/Light Industrial

Hotels/Motels Extended Stay Facilities

Commercial Land Industrial Facilities

Automobile Dealerships Condominium Developments

Religious /Church Facilities Oil Terminals

Ministorage Facilities Golf Courses

Timberlands Utility Easements/Takings

SERVICES OFFERED:

Independent Fee Appraisals and Review Appraisal Services

Consultation and Counseling

Litigation Support (Federal Court, State Court, Federal Bankruptcy Court, Family Court)

Address:

Paul K. Moore & Associates, Inc.

528 Johnnie Dodds Blvd., Suite 102

Mt. Pleasant, South Carolina 29464

Telephone: (843) 881-0454

Fax: (843) 881-0568

Cell : (843) 991-0457

Email: [email protected]

www.Charlestonappraisals.com

mailto:[email protected]

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ADDENDUM